San Francisco (Platts)--12Dec2007
Meeting the requirements of California's 2006 climate law may call for
utilities to increase electricity and natural gas rates by about 30% on
average by 2020, Julie Fitch, director of strategic planning for the
California Public Utilities Commission, said on Tuesday.
California's climate law commits the state to cut greenhouse gas
emissions to 1990 levels by 2020.
A preliminary PUC analysis indicates that the energy sector can meet that
target by ramping up energy efficiency to "unprecedented" levels and by
boosting the state's renewable mandate to 33% renewables by 2020, Fitch said
during a quarterly Energy Action Plan meeting in San Francisco. Other Western
states also will need to boost their use of renewable resources and energy
efficiency efforts for California's greenhouse gas reduction targets to be
met, Fitch said.
Fitch said that according to "very preliminary" PUC estimates, one third
of the utility rate increases could come from energy efficiency costs and
two-thirds from increased use of renewable resources. While the numbers are
not precise, Fitch said she wanted to convey the magnitude of potential rate
increases linked to meeting the 1990 GHG emissions level.
The quarterly Energy Action Plan meetings are convened by the PUC,
California Energy Commission and California Independent System Operator to
debate policy priorities.
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